Nigeria: Value-Added Tax (VAT) rate stays at 7.5% — Finance minister confirms

The Federal Government of Nigeria has confirmed that the Value-Added Tax (VAT) rate remains at 7.5%, dispelling recent rumours of an increase to 10%.

Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, made the clarification in a statement on Monday, reassuring citizens that there is no plan to raise the VAT rate.

Edun emphasized that Nigeria’s tax laws firmly establish the current VAT rate and that the government will not act outside these legal provisions. He also outlined the government’s commitment to promoting economic growth and reducing poverty through balanced fiscal policies.

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“Our focus is to use fiscal policy in a way that fosters sustainable growth, reduces poverty, and allows businesses to thrive,” Edun stated, addressing concerns about potential hardships.

The minister also highlighted government efforts to ease financial pressures, particularly through the suspension of import duties and taxes on essential food items like rice and wheat.

Edun concluded by reaffirming that the 7.5% VAT rate remains in place and will continue to be applied to all eligible goods and services in Nigeria.